W5 - Gifts Flashcards
What is a margin promise?
A sale. The transfer of a property interest via a contractual arrangement that involves a mutual exchange of obligations with legally enforceable remedies in the event of a breach.
What is a gift?
a gratuitous, non-bargained for unilateral transaction often referred to as a “non-margin promise”
Do gifts have the same legal protections as a margin promise?
No, because they are informal
what is the deed of a gift?
A signed document conferring property rights. So, if a donor delivers the deed, but then refuses to transfer the actual property, then the donee can sue
What will make a singed deed irrevocable?
it must convey a valid and irrevocable gift
In the absence of a deed, what 3 elements will make a gift complete?
An intention to make a gift on the part of the donor
Acceptance of the gift by the donee
A sufficient act of delivery
What distinguishes a contract from a gift?
Sufficient delivery. Contracts merely require an exchange of promises.
Jimmy makes a promise to give Andrea a Ferrari. He researches the best model to give, but Andrea insists upon it being painted a color that doesn’t exist. Can Andrea sue for the car? Why/not?
No, because Jimmy made no act of delivery.
Will equity effect an imperfect gift (one that does not meet the 3 elements)?
No
When would equity perfect an imperfect gift?
When a donor expresses an intent to make a gift while alive and then does before delivery can be made. In death, the executor is appointed to make delivery.
Acceptance of a gift is always ___
presumed
A donor must have an intent ___
To make a gift in the present, not the future
What is Donatio Mortis Causa?
a gift given by someone who is contemplating an imminent death
If Mr. Smith promises his billions to Zach on his deathbed, and then recovers, what happens?
If Mr. Smith wishes to recind his gift, he can
if a person is ailing, can they make a gift inter vivo?
yes, which makes things complicated as inter vivo gifts cannot be recinded once given
What are the 3 elements for a Donato Mortis Causa?
The gift just be made in contemplation, though not expectation of death
There must have been delivery of the subject matter to the recipient
The gift must have been made under such circumstances to show that the gift would revert if the donor received
For a gift, when must delivery occur?
When there is still donative intent in the mind of the donor.
Can gifts be perfected without physical delivery?
Yes, if the donor removes the gift from their own control
Does constructive delivery exist?
Yes
Donor gives daughter a set of keys to a car, but keeps a duplicate set of keys. Is this a valid gift?
Probably not, but it depends. Very contextual
Danny gives Seth his sweater, but before Seth can claim it, Danny is struck by lightning and dies. What happens?
Danny’s estate may deny Seth the sweater.
A promise to make a gift in the future is ___
unenforceable
